Some UAW locals reject US Big Three contract offer, but leadership says still on track for approval

HOUSTON (ICIS)–Membership at another United Auto Workers (UAW) local voted against ratifying a recent agreement between the union and the US Big Three automakers on Tuesday, but the union president said the deal remains on track for approval.

The Big Three automakers – Ford, General Motors (GM) and Stellantis – reached tentative agreements with the union recently to end the six-week strike, but the deal needs to be approved by the rank-and-file membership before it becomes final.

Union workers at GM’s Spring Hill plant in Tennessee joined membership at Local 862 in Louisville, Kentucky, and Local 598 in Flint, Michigan, in voting against ratification.

UAW President Shawn Fain told reporters in Washington, DC, on Tuesday that the agreement remains on track for approval.

While each individual local votes on the tentative deal, it is the total combined vote from membership across all locals that determines if it is accepted or not.

The UAW is keeping a vote tracker to follow progress of ratification votes at the 49 locals across the country.

As of Tuesday afternoon, the tracker shows the overall vote at 52% for ratification and 48% against.

Results have yet to be recorded for 22 of the 49 locals, according to the tracker.

IMPACT ON CHEMICALS
The petrochemical industry is closely monitoring the situation because an extended strike would massively disrupt demand for polymers as a typical vehicle contains nearly $3,950 of chemistry including chemical products and chemical processing.

The UAW strike likely slashed monthly polymers demand from the Big Three by 26,000 tonnes for polypropylene (PP), 11,000 tonnes each for polyurethanes (PU) and nylon, and 5,000 tonnes each for acrylonitrile-butadiene-styrene (ABS) and polyvinyl chloride (PVC), based on H1 2023 volumes, according to an analysis of industry data obtained by ICIS.

Virtually every component of a light vehicle, from the front bumper to the rear taillights, features some chemistry, according to Kevin Swift, ICIS senior economist for global chemicals.

The latest data indicate that polymer use is about 437lb (198kg) per vehicle, Swift said.

Please also visit the ICIS automotive topic page.